Ch $8$ Homework

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Providing for doubtful accounts

At the end of the current year, the accounts receivable account has a debit balance of $$1,006,000$ and sales for the year total $$11,410,000.$

The allowance account before adjustment has a debit balance of $$13,600.$ Bad debt expense is estimated at $1/2$ of $1\%$ of sales.

The allowance account before adjustment has a debit balance of $$13,600.$ An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $$43,500.$

The allowance account before adjustment has a credit balance of $$5,400.$ Bad debt expense is estimated at $1/4$ of $1\%$ of sales.

The allowance account before adjustment has a credit balance of $$5,400.$ An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $$44,800.$

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions $($a through d$)$ listed above.